Classic Minerals raises $1M to fund June gold hunt

By Zachary Graves. Published at May 28, 2018, in Mining

Classic Minerals (ASX:CLZ) has raised $1 million to fund its upcoming drilling program at the Forrestania Gold Project in Western Australia.

These funds were raised via the first stage of a two tranche placement to institutional and sophisticated investors located in Australia at $0.004 per share. The raising was oversubscribed with strong demand from new major domestic investors.

This puts CLZ in an excellent position to kick off an aggressive exploration and Resource delineation drill program at Forrestania. Following the encouraging results from its last program at Kat Gap, Van Uden West and Lady Lila, CLZ will be targeting these areas again with additional drilling. On top of that, CLZ will also be returning to the Lady Magdalene prospect to locate the high-grade mineralisation that has been missed by previous explorers.

CLZ CEO, Dean Goodwin, said: “Following the fantastic results of our last drilling program, including a brand-new discovery at Van Uden West and multiple high-grade gold hits at Kat Gap and Lady Lila, we are very excited to be heading back to the FGP to undertake an aggressive follow-up drill program. I am also thrilled to be heading back to Lady Magdalene to hopefully unlock major high-grade lodes which will bolster the resource with quality oz.”

“The sustained exploration work at FGP would not be possible without the support and belief of our new shareholders and existing shareholders. We are pleased to note the participation of three leading stockbroking firms from Perth and Sydney,” added Goodwin.

Of course, as with all minerals exploration, success is not guaranteed — consider your own personal circumstances before investing, and seek professional financial advice.

Drilling at Forrestania

The Forrestania Gold Project contains an existing JORC-compliant Mineral Resource of 5.3 Mt at 1.39 grams per tonne for 240,000 ounces of gold. A scoping study has also confirmed both the technical and financial viability of the project.

CLZ plans to undertake the following drilling activities in early June:

Previous drilling results from the Van Uden West target confirm the discovery of a significant new zone of gold mineralisation. Preliminary interpretation suggests that the prospect is geologically similar to Kat Gap, with gold mineralisation sitting adjacent to the granite/greenstone contact. CLZ has planned five holes for 480 metres total to test the strike/depth potential of the new discovery.

Lady Lila, on the other hand, is a BIF-(Branded Iron Formation)-hosted gold deposit that is geologically similar to the nearby Bounty and Blue Vein ore bodies, which are held by the $888 million-capped Kidman Resources (ASX:KDR).

Previous drilling at Lady Lila confirmed the presence of a thick, steep east dipping ore zone meriting additional follow-up. The upcoming drill program (five RC holes for 360 metres total) will focus on extending the mineralisation along strike and at depth.

The Kat Gap target contains a shallow unmined gold deposit discovered in the 1990s, which was the subject of Resource estimations and a scoping study by Sons of Gwalia in 2003. High-grade RC drill intercepts include 15 metres at 15.1 grams per tonne gold from 39 metres depth and 6 metres at 19.1 grams per tonne from 17 metres depth.

The open-ended deposit lies within a 5 kilometre long geochemical gold anomaly that has seen very little drill testing; after the recently completed drill program, CLZ sees considerable potential for the discovery of a substantial shallow high-grade gold deposit here. The upcoming program will be testing for extensions of the high-grade system. CLZ has 12 holes planned at Kat Gap for a total of 1,100 metres.

Finally, Lady Magdalene is a large, modestly graded deposit which appears to host high-grade, cross-cutting gold lodes within existing drill lines that are 100-200 metres apart. Previous diamond drilling successfully confirmed the existence of such lodes; the planned drilling will further test the extent of strike, dip and grade of these high-grade cross-cutting lodes. CLZ has 12 holes planned here for a total of 1,060 metres.

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